These are some beneficial attributes of a digital currency
The digital form of currency offers a number of advantages such as;
- Cost-effective to circulate as there is no need to print or mint, securely store, circulate or transport securely for example.
- Digital currency is more convenient for making exact payments for the value of goods and services as there is no need to give change which is a major challenge with banknotes and coins produced in specific value denominations.
- Digital currency can be exchanged faster and more efficiently as there is no need for the transacting parties to be physically present at the time of exchange – it is therefore best suited for remote and online transactions where a real time or near real time transaction experience is essential.
- It is easier and more cost effective when transaction recording accuracy and transaction tracking and transparency are vital. These are key to business transaction process automation in today’s emerging tech driven world.
- In some countries the use of digital currencies can improve transparency and strengthen the capability to fight corruption, efficiently account for and collect revenue and increase tax collection efficiency, improve capabilities for central Government to effect the flow of money across the economy, improve the capacity to effect monetary policy or build a more accessible, more resilient and responsive financial system.